Final Technical Report for DHHS Contract HHSP23320054301ER
Please do not circulate without permission of the authors or the Office of the Assistant Secretary of the Department of Health and Human Services.
Stephen T. Parente, Ph.D.
Roger Feldman, Ph.D.
SCHOOL OF MANAGEMENT
UNIVERSITY OF MINNESOTA
The purpose of this project was to examine a key element to the success of consumer directed health plans (CDHPs)—namely the extent to which consumers use provider cost and quality information to select the highest value provider. A large (unnamed) national insurer has been using a star system to rank providers with different levels of quality and cost. These data, along with person-level claims before and after the star system was implemented, could identify whether consumers respond to these systems. As such, this analysis would help examine this critical component of CDHPs. This analysis has two key findings –1) older, sicker individuals and women are more likely to use the provider rating system, and 2) the provider rating system appears to have a negative impact on expenditures.
Material contained in this publication is in the public domain and may be reproduced, fully or partially, without permission of the Federal Government. The courtesy of attribution is requested. The recommended citation follows:
Office of Health Policy, ASPE(2008) The Regulation of the Individual Health Insurance Market.
Washington, DC: U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation.